Case Summary (G.R. No. 188493)
Procedural History
After the 1989 accident that killed Rodolfo and his daughter Monalisa and injured two others, petitioners filed a criminal case (Reckless Imprudence) and thereafter a separate civil case for damages (Civil Case No. 3593). The trial court rendered judgment finding respondents liable in quasi‑delict and awarded various damages. On appeal, the Court of Appeals affirmed liability but deleted the award for lost earning capacity (actual damages) for Rodolfo on the ground that documentary proof was required. Petition for review to the Supreme Court followed; the Supreme Court modified the appellate decision.
Factual Background
On disembarking from M/V Island Traders at Jetafe wharf, Rodolfo, Monalisa, Johanna and Abellana boarded an overcrowded cargo truck owned/operated by Simolde. Aparra (the mechanic) started driving while the official driver Caballes was momentarily absent; when Caballes returned he sat beside Aparra but did not take control. Aparra swerved to avoid obstacles on a narrow, pot‑holed road and the truck fell off the wharf, causing fatalities and injuries. Evidence at trial included eyewitness/testimonial accounts and testimony by an acting traffic investigator (SPO2 Torniado) regarding the truck, road conditions and that Aparra produced only a student driver’s permit.
Trial Court and Court of Appeals Findings on Liability
Both the trial court and the Court of Appeals found Caballes and Aparra grossly negligent: Aparra for driving despite inexperience and lacking proper license; Caballes for allowing an inexperienced person to drive and failing to exercise control. The Court of Appeals also held owner Simolde solidarily liable under the employer‑liability principle in Article 2180 for failing to exercise due diligence in selecting/supervising employees.
Issue of Standing (Abellana)
The Supreme Court addressed Abellana’s standing: because she failed to reserve her civil action when the criminal case was filed, her civil claim was deemed instituted with the criminal action under Rule 111 and she is barred from recovering twice for the same act. The Court accepted the Court of Appeals’ reinstatement of the civil case only with respect to petitioner Vivian.
Legal Basis for Civil Liability (Quasi‑delict and Vicarious Liability)
The Court applied Article 2176 to establish liability for acts of negligence constituting a quasi‑delict (requirements: damage, negligence, and causal relation). It reiterated that employer liability under Article 2180 gives rise to a presumption (juris tantum) against the employer when an employee’s negligence causes harm; the employer must prove due diligence in selection and supervision to escape liability. Simolde’s testimony that passengers sometimes rode the cargo truck “at their own risk” and his failure to control employees were held to show lack of due diligence, sustaining solidary liability.
Loss of Earning Capacity — Evidentiary Standard
The core legal dispute concerned the deletion by the Court of Appeals of the award for Rodolfo’s lost earning capacity on grounds of insufficient documentary proof. The Supreme Court held that documentary proof is not a prerequisite in civil cases: claims are to be established by a preponderance of evidence under Rule 133, and competent testimonial evidence may suffice to enable a fair and reasonable estimate of lost earnings. The Court relied on prior decisions (e.g., Pleyto v. Lomboy and Philippine Airlines) accepting testimony of persons with personal knowledge (spouse, employer, co‑workers, officers) to prove income where documentary records are absent.
Formula and Method for Computing Lost Earning Capacity
The Court applied the settled formula endorsed in jurisprudence (derived from Pleyto, Negros Navigation and People v. Wahiman): life expectancy = (2/3) × (80 − age at death); net annual earnings = 50% of gross annual income (to account for living and necessary business expenses); loss of earning capacity = life expectancy × net annual earnings. This formula is presumptive and applied where plaintiffs lack actuarial or statistical proof; it produces a reasonable estimate for compensation purposes.
Computation Applied to Rodolfo’s Case
Factually, Rodolfo was 48 years old at death and testified (by employer Abellana) to have been earning approximately P15,000 monthly. The Court converted P15,000 monthly to P180,000 gross annual income. Life expectancy: (2/3) × (80 − 48) = (2/3) × 32 = 21.33 years. Net annual earnings = 50% of P180,000 = P90,000. Loss of earning capacity = 21.33 × P90,000 = P1,919,700. The Supreme Court reinstated and awarded P1,919,700 as actual damages for Rodolfo’s lost earning capacity.
Other Damage Items: Civil Indemnity, Moral and Exemplary Damages
The Court affirmed mandatory civil indemnity (Article 2206) and awarded P50,000 to the heirs of Rodolfo and P50,000 to the heirs of Monalisa. The Court affirmed moral damages of P50,000 for each set of heirs (total P100,000) and upheld exemplary damages (P10,000) based on gross negligence by respondents. The Court explained that moral damages compensate for mental anguish while exemplary damages are punitive and discretionary, available where conduct is wanton or grossly negligent.
Attorney’s Fees and Litigation Expenses
Given the imposition of exemplary damages and the protracted litigation, the Supreme Court awarded increased attorney’s fees (P100,000) and litigation expenses (P50,000) to petitioner Vivian. The Court noted that attorney’s fees are allowable when exemplary damages are awarded or where a separate civil action has been filed.
Interest on the Judgment — Modification and Rationale
The Court modified the interest regime applied by the Court of Appeals. It held that moratory interest on unliquidated claims is discretionary and generally inappropriate where awarding actual damages already compensates the heirs; however, interest on the final judgment is appropriate. Citing Eastern Shipping but applying the subsequent BSP Monetary Board circulars recognized in Nacar v. Gallery Frames, the Court corrected the appellate imposition of 12% post‑finality interest to 6% per annum (the prevailing legal interest rate after July 1, 2013). The Supreme Court ordered legal interest at 6% per annum to run from fin
Case Syllabus (G.R. No. 188493)
Procedural History
- Petition for Review on Certiorari under Rule 45 of the 1997 Rules of Court filed in the Supreme Court seeking partial modification of the Court of Appeals' April 3, 2008 Decision and May 28, 2009 Resolution in CA-G.R. CV No. 71090.
- Criminal complaint for Reckless Imprudence resulting to Double Homicide, Multiple Serious Physical Injuries and Damage to Property filed on April 3, 1990 (Criminal Case No. 6555, Regional Trial Court, Tagbilaran City, Bohol).
- Separate civil complaint for damages filed on January 4, 1991 (Civil Case No. 3593, Branch 3, Regional Trial Court, Butuan City) against Simolde, Caballes, and Aparra.
- Regional Trial Court (Branch 3, Butuan City) Decision dated November 17, 2000 found Caballes and Aparra liable for quasi-delict and rendered judgment for plaintiffs; defendants filed Notice of Appeal on November 27, 2000.
- Court of Appeals promulgated Decision on April 3, 2008: affirmed liability but deleted award for Rodolfo’s loss of earning capacity and adjusted damages; Motion for Partial Reconsideration filed and denied by CA Resolution dated May 28, 2009.
- Petitioners filed Reply to respondents’ Comment as required by Supreme Court (February 17, 2010 Resolution); petition ultimately resolved by the Supreme Court Decision dated December 13, 2017 (original received March 1, 2018).
Parties and Reliefs Sought
- Petitioners: Vivian B. Torreon (Vivian) and Felomina F. Abellana (Abellana). Note: inclusion of Abellana as petitioner later challenged and addressed.
- Respondents: Generoso Aparra, Jr., Felix Caballes, and Carmelo T. Simolde.
- Petitioner Vivian’s prayers to the Supreme Court:
- Grant compensatory/actual damages for loss of earning capacity in the amount of P2,079,675.00.
- Increase moral damages to P1,000,000.00.
- Increase exemplary damages to P1,000,000.00.
- Increase attorney’s fees and litigation expenses to P100,000.00 and P50,000.00, respectively.
- Lower courts’ awards (as pertinent background):
- Trial court (November 17, 2000): joint and several payments ordered including P300,000.00 as actual damages, P50,000.00 as moral damages, litigation expenses P10,000.00, attorney’s fees P25,000.00 and P10,000.00 (in solido to plaintiffs), and exemplary damages P10,000.00.
- Court of Appeals (April 3, 2008): modified awards — civil indemnity P50,000.00 for death of Rodolfo and P50,000.00 for death of Monalisa; temperate damages P25,000.00 each for pecuniary loss; moral damages P50,000.00 total; exemplary damages P10,000.00; attorney’s fees P10,000.00; litigation expenses P25,000.00; interest provisions imposed.
Facts (operative and detailed)
- On November 1, 1989, Rodolfo Torreon (Rodolfo), his daughters Monalisa and Johanna, and Abellana arrived at Jetafe, Bohol municipal wharf from Cebu aboard M/B Island Traders. The vessel was owned and operated by Carmelo Simolde.
- After disembarking, passengers sought transport to the poblacion. A cargo truck owned and operated by Simolde entered the wharf; initial overcrowding led some passengers to wait for another vehicle but the cargo truck was the only vehicle entering the wharf.
- Approximately ten minutes later the same cargo truck returned; more than 30 passengers boarded. Abellana sat in front; Rodolfo and his daughters were at the back where there were no proper seats, causing many passengers to stand or sit on their bags.
- While passengers were boarding, Simolde called driver Felix Caballes to the truck. Caballes approached but left the engine running. Generoso Aparra, Jr., the chief diesel mechanic, began driving the truck while the engine was running.
- Caballes rushed to the truck and sat beside Aparra but did not take control; Caballes allowed Aparra to continue driving despite Aparra presenting only a student driver’s permit when asked for a license.
- Aparra maneuvered to avoid a parked bicycle, then swerved left allegedly to avoid a man named Marcelo Subiano standing at the road side. The road was narrow (four meters), rough, and full of potholes; Aparra lost control and the truck fell off the wharf.
- Consequences: Rodolfo and Monalisa died; Johanna and Abellana sustained injuries.
Trial Evidence (witnesses and testimony highlights)
- SPO2 Federico T. Torniado: acting traffic investigator of the PNP assigned to the case; testified he had seen the pick-up truck transport passengers from the wharf; road was four meters wide and could accommodate only one vehicle; Aparra produced a student driver’s permit when asked for license.
- Abellana: testified Rodolfo was her general manager in Butuan City overseeing three drugstores, an apartment, and rice fields; stated Rodolfo’s basic salary was P10,000.00 and he received a 20% commission on profit, estimating his earnings at more or less P15,000.00 monthly; she claimed she disposed of accounting books and could not present them in court.
- Simolde: testified passengers sometimes boarded cargo truck “at their own risk” and insisted the truck was intended only for cargo; acknowledged a provincial practice where passengers boarded cargo trucks despite driver’s instructions; claimed he had not received information about passenger boarding though later admitted passengers sometimes joined the cargo truck.
Trial Court Findings and Disposition
- Regional Trial Court (November 17, 2000) found Caballes and Aparra committed acts constituting quasi-delict; proximate cause of deaths and injuries attributed to respondents.
- Ordered defendants (Simolde, Caballes, Aparra) to pay jointly and severally:
- P300,000.00 as actual damages;
- P50,000.00 as moral damages;
- P10,000.00 in litigation expenses (in solido to plaintiffs);
- Attorney’s fees: P25,000.00 and P10,000.00 (in solido to plaintiffs Vivian Torreon and Felomina Abellana);
- P10,000.00 as exemplary damages.
- Defendants appealed to the Court of Appeals.
Court of Appeals Decision (April 3, 2008) — Findings and Modifications
- Affirmed negligence of Caballes and Aparra: Aparra unlicensed/inexperienced driver, Caballes allowed Aparra to drive and did not caution him; truck overloaded and road conditions hazardous.
- Held Simolde solidarily liable with employees for failing to exercise due diligence in supervising them.
- Deleted award of actual damages for Rodolfo’s loss of earning capacity on the ground that documentary evidence should be presented to substantiate a claim for loss of earning capacity.
- Rendered judgment ordering appellants (Simolde, Caballes, Aparra) to pay Vivian Torreon:
- P50,000.00 as civil indemnity for death of Rodolfo;
- P50,000.00 as civil indemnity for death of Monalisa;
- P25,000.00 as temperate/ moderate damages for pecuniary loss due to death of Rodolfo;
- P25,000.00 as temperate/ moderate damages for pecuniary loss due to death of Monalisa;
- P50,000.00 as moral damages;
- P10,000.00 exemplary damages;
- P10,000.00 as attorney’s fees;
- P25,000.00 as litigation expenses;
- Legal interest: 6% per annum from promulgation of trial court Decision (Nov. 17, 2000) and 12% per annum upon finality of appellate decision until actual payment.
Issues Presented to the Supreme Court
- Whether actual damages for loss of earning capacity